Work out payday loan cost instantly with clear inputs, formula shown and shareable results.
Payday lenders quote a flat fee per unit borrowed over a very short term. Annualising that fee exposes the true cost: a fee that sounds small over two weeks translates into a triple-digit APR.
Payday APR
APR = fee/amount × 365/term days × 100
Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
So it can be compared with every other credit product, which is quoted annually. It also shows the cost of rolling the loan over repeatedly.
Each rollover charges the fee again on the same principal, so the cost compounds while the debt does not reduce.